Australia also welcomed the deal, its second largest trade deal with another country. “It`s a really historic agreement – it`s a real free trade agreement. Everyone wins,” said Australian Trade Minister Dan Tehan. The age limit for the popular UK working holiday visa for young Australians will be raised from 30 to 35 under the new deal. The maximum stay on these visas will also be increased from two years to three years. The agreement in principle becomes official as soon as the text is finalized and signed and has passed through the parliaments of both countries. Prime Ministers Boris Johnson and Scott Morrison announced an agreement in principle on the free trade agreement in June, but negotiators have spent the last six months finalising the text. The deal will also make it easier for young Australians to live and work in the UK – and Britons to come here – by raising the age limit for the working holiday visa to 35. At the same time, Australia is desperately seeking new markets and alliances to strike a balance against China and its growing willingness to arm its trade relations as it pushes Australia to change its political behavior. Shadow International Trade Minister Nick Thomas-Symonds said Labour supported such a deal but would look very carefully at it to see it deliver benefits.

For both countries, however, the overall economic benefits are modest. The UK government`s modelling suggests that the deal could boost trade between the UK and Australia by around $19 billion “in the long term”, while the UK`s GDP could grow by around $4.2 billion by 2035. The agreement, signed at a virtual ceremony by International Trade Minister Anne-Marie Trevelyan, is expected to enter into force next year. More and more cars for Australia and car production in the UK are growing Australia and the UK have officially signed a free trade agreement designed to make it easier for Australians to live and work in the UK, as well as to eliminate or phase out tariffs on a wide range of products, including lamb, beef, sugar and dairy products. In June, Johnson said the deal was “economically important” but “more important politically and symbolically.” Rolls-Royce also said it was “pleased that a trade deal has been reached, but is awaiting more details”. Popular BRITISH brands such as Land Rover, Cadbury, Johnnie Walker, Lush, Digestives Biscuits and many others are expected to drop in price as the null duty clause of the new free trade comes into force over the next five years. It highlights the fact that trade agreements involve trade-offs, but this agreement must also be seen in light of the wider trade challenges facing the UK. The largest factories supplying Australia are Nissan, Honda and Jaguar Land Rover with contributions from some small series manufacturers, including Allied Vehicles (taxi and car manufacturers for disabled users), Aston Martin, Bentley, Caterham, Dare, Elemental, LEVC, Lotus, McLaren, Morgan, Pilgrim, Radical, Rolls-Royce and TVR. Trade Minister Dan Tehan on Friday officially signed the Free Trade Agreement (FTA) with the UK Secretary of State for International Trade. The deal, which was struck yesterday during Australian Prime Minister Scott Morrison`s visit to his counterpart Boris Johnson in London, was the first major deal reached since Britain officially left the EU on December 31 last year. “This shows our countries` commitment to free trade as an engine of economic growth and strengthening bilateral relations.

Trevelyan says this deal is a model for all the other countries that want to make trade deals with the UK so they can – in her words – “see how expansionary we want to be.” A five percent tariff on British-made cars arriving in Australia is expected to be lifted within weeks thanks to a free trade agreement (FTA) between the two countries. The Federal Chamber of Automotive Industries (FCAI) has welcomed the outcome of negotiations on the permissive agreement between Australia and the United Kingdom. “The Australian government should be congratulated for achieving this result, which will make British cars cheaper for Australian buyers and provide better access to vehicles with the latest safety, environmental and engine technologies,” a spokesman said. “The FCAI strongly encourages the Australian government to achieve similar results in future free trade agreement negotiations around the world.” The UK has signed a free trade agreement with Australia, which it says will benefit consumers and businesses. Australia signs free trade agreement with the UK, removes import tariffs and opens up the UK labour market It remains to be seen whether the deal between the two countries will mark the end of Australia`s luxury car tax (LCT). Last month, a DFAT spokesman told WhichCar “in general” that the LCT does not fall within the scope of a free trade agreement, but they did not rule out that changes to the tax may be possible in the future. Currently, meat trade between the two countries is very low. A spokesman for Jaguar Land Rover Australia, which imports cars from the UK, said it was waiting to see how the final details of the deal would affect its plans. The two countries say the agreement will also help strengthen their close strategic ties. “When the permissive free trade agreement between Australia and the UK comes into force, about 75% of Australia`s bilateral trade will be covered by free trade agreements.” But beef, lamb and sugar producers could wait to reap the full benefits, with the complete elimination of tariffs on all export volumes beyond the duty-free quota, which is expected to last up to 10 years.

Mike Hawes, Managing Director of SMMT, said: “Australia is an important growth market and the industry welcomes the agreement in principle on a trade agreement between the two countries. The SMMT said the UK sold (around) 20,000 cars to Australia in 2019, compared to 578,000 to the EU. Four out of five cars made in the UK are exported, with the actual percentage in April being 88%. “However, given the integration of the automotive industry and the importance of proximity, we also need to ensure smooth trade with neighbouring markets.” “If tariffs can be avoided, making UK automakers more competitive with their international competitors, there is some potential to boost our vehicle exports and we look forward to seeing the finer details of the deal to ensure the deal respects the automotive sector. According to the Department of Foreign Affairs and Trade (DFAT), a new free trade agreement with the UK will create more Australian jobs and trade opportunities for exporters. Australians will pay less for cars, alcohol and snacks imported from the UK after a major trade deal is reached. Trade agreements also aim to abolish quotas – these are limits on the amount of goods that can be traded. “We recognise the shared commitment of the UK and Australia to provide free and fair access to trade. We will review the details of the agreement in principle after it is published,” they added. Today, the two countries officially agreed on immediate duty-free quotas for a number of Australian exports, with plans to completely abolish taxes within a decade and reduce the cost of imported British cars, whiskey, confectionery, biscuits and cosmetics worth $200 million.

In 2019-2020, trade in goods and services between Australia and the UK was estimated at £20.1 billion, and both sides hope to significantly increase this amount. Prices for British imports such as alcohol, make-up, chocolate and cars will fall in Australia after a major trade deal between Canberra and London was set in stone on Friday. The final text of the agreement does not explicitly mention the goal of limiting global warming to 1.5 degrees, but says the two countries reaffirm their “commitment to fight climate change,” including under the Paris Agreement. It also states that both recognize the “importance of achieving their goals” under the agreement. Australian consumers will benefit from cheaper products, including cars and whiskey, with tariffs on these imports being lifted immediately and all other tariffs removed within five years. The government estimated it would free up £10.4 billion in additional trade while ending tariffs on all UK exports. A British government statement this week said the deal with Australia meant carmakers in the Midlands and northern England would “reduce tariffs by up to five percent and boost demand for their exports.” .